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Changes to independence for Youth Allowance
What were the changes to Independence arrangements for Inner Regional students?
From 1 January 2012 the Government extended to students from Inner Regional Australia the workforce participation independence arrangements for ABSTUDY and Youth Allowance that previously applied only to students from Outer Regional Australia, Remote Australia and Very Remote Australia.
The extended arrangements allow higher education and VET students from Inner Regional Australia to be considered independent for ABSTUDY and Youth Allowance if:
- they are a full-time student; and
- they are required to live away from home to study; and
- they have combined parental income of less than $150,000; and
- they have either:
- worked part-time (at least 15 hours each week) for two years since last leaving secondary school; or
- had cumulative earnings totalling at least 75% of the appropriate maximum National Training Wage Award rate ($21,009 since 1 July 2011) in 18 months since last leaving secondary school.
In addition, Inner Regional young people continue to be able to qualify as independent for ABSTUDY or Youth Allowance under the existing full-time work criterion – that is, if they have had full-time employment of at least an average of 30 hours per week for 18 months over a 2 year period.
What about Inner Regional students who have already left school and been working?
Inner Regional students who left school 18 or more months ago may qualify under the new independence arrangements which commenced on 1 January 2012. Employment undertaken over the period since leaving school will be taken into account, even if that work was done prior to 1 January 2012.
How do I find out if my home is classed as Inner Regional?
To find out whether your home is located in an area classified as a Major City, Inner Regional, Outer Regional, Remote or Very Remote, visit the youth.gov.au website and then select your state or territory and use the legend provided. For a more accurate assessment of your family home location, please visit the Student Regional Area Search Service at http://www.centrelink.gov.au/wps/portal/clk_common/RIS on the Department of Human Services (Centrelink) website.
How can young people from Major Cities get independence through working?
Young people from all areas will continue to be able to qualify as independent for ABSTUDY or Youth Allowance if they have had full-time employment of at least an average of 30 hours per week for 18 months over a 2 year period.
Note that, from 1 January 2012, the age of independence for ABSTUDY and Youth Allowance was reduced to 22 years.
What if I have worked irregular hours?
In assessing claims for ABSTUDY and Youth Allowance, The Department of Human Services (Centrelink) takes a flexible approach in determining whether a young person has met the eligibility requirements.
To achieve independence through workforce participation, a young person needs to demonstrate that they have been engaged in employment that has resulted in genuine self-support. A young person can satisfy the workforce participation criterion by having supported themselves through full-time paid employment averaging at least 30 hours per week for at least 18 months during any period of two years since leaving school.
Where a young person has been working in a job or jobs but has not consistently had 30 hours per week, their hours of work can be averaged provided that s/he can reasonably be considered to be engaged in full-time employment throughout the 18 month period.
Hours of work can be averaged over periods of up to 13 weeks. The most advantageous calculation for the young person is applied during The Department of Human Services (Centrelink’s) assessment of the claim.
To allow hours of work to be averaged over periods longer than 13 weeks would bring into question whether the person has been in ‘full-time employment’ over the entire 18 month period. For example, to allow someone to average over the entire 18 month period would allow them to work for 45 hours a week for only twelve months and not work at all for the other six months. That would not be consistent with the intent of the legislation.
Also, from 1 January 2012, young people from Inner Regional areas who have worked irregular hours may be able to qualify as independent if they have had cumulative earnings totalling at least 75% of the appropriate maximum National Training Wage Award rate ($21,009 since 1 July 2011) in 18 months since last leaving secondary school. To meet this criterion, s/he must be required to live away from home to study and have parental income of less than $150 000. Young people from Outer Regional, Remote or Very Remote areas who have worked irregular hours already had access to these arrangements (from 1 January 2011).
Does this change to independence arrangements for young people from Inner Regional areas affect job seekers on Youth Allowance?
No, job seekers on Youth Allowance from all areas will continue to be considered independent through workforce participation if they have had full-time employment of at least an average of 30 hours per week for 18 months over a two year period.
Changes to Relocation Scholarship
What were the changes to Relocation Scholarship for students from regional areas?
From 1 January 2012, Relocation Scholarship values were reset to provide more assistance in the second and third years of living away from home to study for higher education students from regional areas.
For eligible higher education students from regional areas, the 2012 values are $4000 in the first year of living away, $2000 in each of the second and third years and $1000 in any subsequent years of study.
What is the definition of a “regional area” for the purposes of Relocation Scholarship rates?
A regional area is one that is classified as Inner Regional, Outer Regional, Remote or Very Remote under the Australian Standard Geographical Classification (ASGC).
How do I find out if my home is classed as being in a regional area?
To find out whether your home is located in an area classified as a Major Cities Inner Regional, Outer Regional, Remote or Very Remote, visit the youth.gov.au website and then select your state or territory and use the legend provided. For a more accurate assessment of your family home location, please visit the Student Regional Area Search Service at http://www.centrelink.gov.au/wps/portal/clk_common/RIS on the Department of Human Services (Centrelink) website.
Will regional students who received the higher Relocation Scholarship in 2011 be eligible for the $2000 payment in 2012?
Students from regional Australia who were paid the initial $4124 Relocation Scholarship payment in 2011, will receive the $2000 amount in 2012 (for their second year of living away from home) as long as they remain eligible for the payment. They need to be receiving dependent ABSTUDY or Youth Allowance (or be independent in some circumstances), studying an approved scholarship course and continuing to live away from home for study.
What were the changes to Relocation Scholarship payments for students from Major Cities?
For eligible students from Major Cities, the 2012 values of Relocation Scholarship are $4000 in the first year of living away and $1000 in subsequent years of study.
A major city is an area that is classified as a Major City under the Australian Standard Geographical Classification (ASGC).
Was there any change to eligibility criteria for a Relocation Scholarship?
There were no changes to eligibility criteria for a Relocation Scholarship.
Relocation Scholarship continues to be available to dependent students and certain independent students receiving ABSTUDY or Youth Allowance who are undertaking an approved scholarship course, and who have to live away from the family home for study.
An approved scholarship course is an accredited higher education course or preparatory course that is undertaken at a higher education institution.
Can independent students qualify for Relocation Scholarship?
There is no change to the current rules. Young people who have become independent for ABSTUDY or Youth Allowance by reaching the age of independence (22 years since 1 January 2012), being married or in a de facto relationship, or through the workforce participation criteria are not eligible for a Relocation Scholarship.
A small number of independent students who are disadvantaged by their personal circumstances can qualify for Relocation Scholarships – this includes young people who are independent because they are an orphan or are in State Care, it is unreasonable for them to live at their parental home, or they have a dependent child of their own.
Do independent students who receive a Relocation Scholarship because they are disadvantaged by their personal circumstances get the higher regional rates?
An eligible Relocation Scholarship recipient who is independent will get the higher ($2000 in 2012) rate in each of the second and third years of study if, six months prior to commencing their higher education course, they were living in an area classified as Inner Regional, Outer Regional, Remote or Very Remote under the Australian Standard Geographical Classification (ASGC).
Is the rate of Relocation Scholarship indexed?
The rate of Relocation Scholarship will be indexed by the Consumer Price Index (CPI) from 1 January each year, starting from 1 January 2013.
Changes to Student Start-up Scholarship
What were the changes to Student Start-up Scholarship payments?
From 1 January 2012 the amount of the Student Start-up Scholarship was rebased to $1025 per half yearly instalment ($2050 per annum). This applies to all eligible higher education students receiving ABSTUDY, Austudy or Youth Allowance.
Is the rate of Student Start-up Scholarship payments different for students from regional areas?
No, the rate of Student Start-up Scholarship payments has been rebased to $1025 per half yearly instalment for students from all areas.
Is the rate of Student Start-up Scholarship payments indexed?
This amount will be indexed by the Consumer Price Index (CPI) from 1 January each year, starting from 1 January 2013.
Were there any changes to eligibility for a Student Start-up Scholarship?
There were no changes to the eligibility criteria for a Student Start-up Scholarship.
Full-time students who are undertaking an approved scholarship course and receiving student income support are entitled to a Student Start-up Scholarship payment for each half-year of their course.
An approved scholarship course is an accredited higher education course or preparatory course that is undertaken at a higher education institution.
Changes to arrangements for Masters by coursework degrees
What were the changes to arrangements for Masters by coursework degrees?
The extension of student income support to all Masters by coursework degrees, which was to occur on 1 January 2012, was deferred by two years and will now commence from 1 January 2014.
Existing arrangements for the approval of professionally-orientated Masters by coursework programs for the purposes of eligibility for Youth Allowance, Austudy and Pensioner Education Supplement will continue in 2012 and 2013.
What are the arrangements for Masters by coursework degrees in 2012 and 2013?
Coursework masters programs may be eligible for approval for student income support where the qualification is essential for entry to, or employment in the profession, and:
- the qualification is the minimum requirement for registration with a professional body and for entry to a profession; or
- the course provides the fastest pathway to professional entry; or
- the course is the only pathway to professional entry offered by the higher education institution.
For the 2012 and 2013 academic years, existing arrangements continue where higher education providers submit individual Masters by coursework degrees for assessment. The Minister for Tertiary Education has made a determination of approved courses for the 2012 academic year.
Higher education institutions were invited to make submissions for consideration of Masters by coursework programs for approval for 2012. The decision to apply for the approval of courses is the responsibility of individual higher education institutions. A similar process will apply for the 2013 academic year.
How do I know if my Masters by coursework degree is approved?
Approved Masters by coursework degrees are listed in Schedule 3 of the Student Assistance (Education Institutions and Courses) Determination. The Determination is available on the ComLaw website.
The Determination is updated following completion of assessments of individual Masters by coursework degrees proposed by higher education institutions.
In addition, all Masters degrees (research or coursework) and Doctorates are considered approved courses for Indigenous students who wish to receive ABSTUDY under the ABSTUDY Masters and Doctorate Award.
General
Was the age of independence reduced to 22 years on 1 January 2012?
Yes, the age of independence for ABSTUDY and Youth Allowance was reduced to 22 years on 1 January 2012.
Do these changes affect the changes to the personal income test from 1 July 2012?
No, there is no change to the 1 July 2012 increase to the personal income free area to $400 per fortnight from $236 for ABSTUDY, Youth Allowance and Austudy and the maximum Student Income Bank balance to $10 000 from $6000.
Did the Parental Income Test threshold increase on 1 January 2012?
Yes, the Parental Income Test (PIT) threshold for ABSTUDY and Youth Allowance increased to $46 355 on 1 January 2012.
What were the changes to the Rural Tertiary Hardship Fund?
The Rural Tertiary Hardship Fund ceased on 1 January 2012.
The package of reforms includes additional support for regional and remote students.
Where do I go for more information?
In addition to the information on this website, you can also visit centrelink.gov.au or call 13 24 90 to talk to The Department of Human Services (Centrelink) about Youth Allowance or 13 23 17 for ABSTUDY enquiries.